The case stems from the bankruptcy of Worldwide Diamond, a Dallas diamond company that filed for bankruptcy in October 2013. Heimburger was its principal partner.

The company sold $50,000 diamond notes as investment vehicles, according to a government statement. But the indictment charges that the company deceived investors by not actually buying diamonds with the money.

The indictment alleges that Heimburger and Otteson caused over $6.4 million to be fraudulently collected from 77 investors.